News
OFFICIAL: Rents increasing at record rate across UK, says ONS
Monday 5th September 2022
Nigel Lewis
Private rental prices jumped by 3.4% across the UK over the past year - the largest annual growth rate since the ONS began its annual survey in January 201 - albeit much lower than the current rate of inflation.
Prices in England grew by 3.4% in the same period, which is the highest 12-month growth rate since November 2008, according to the government's latest price index.
Scotland's annual rental growth continues to surpass England and Wales, where prices increased by 3.6% in the 12 months to August, although this is down from 3.7% in July. Prices in Wales grew by 2.5%, while the annual growth rate for Northern Ireland (8.4%) was even higher.
Among the English regions, East Midlands recorded the largest annual rental price increase of 4.5%, while London saw the lowest (2.5%) up from an increase of 2.1% in July.
Strongest
It marks the strongest annual growth in London since October 2016 but despite this, the capital's rental price growth is the lowest of any of the English regions.
August had the highest level of rental demand that Foxtons has ever seen, says lettings MD Gareth Atkins, who adds that unprecedented demand, paired with low supply, has pushed prices and budgets up across the capital. "There are 43% fewer properties available to rent in the London market," says Atkins. "This huge imbalance between supply and demand may cause an unseasonably busy Q4 to come."
Gary Wright, co-CEO of payment technology firm flatfair, reports that rent has increased by more than 17% in London over the past year.
He adds: "With tenants stuck between a rock and a hard place - unable to afford a house but barely able to afford rent - policymakers need to be directing their attention toward Generation Rent. Encouraging a shift away from the punishing traditional deposit system would be a good start."